Offshore Interest Rates Keep Going Up

by Carla Johnson, Investors Offshore, London

09 January 2007

IOM-based Derbyshire Offshore has just introduced a limited issue of its best buy fixed rate Manx Bonds over 4 and 5 years, both paying 5.40% Gross/AER.

Fiona Passey, Director of Offshore Banking comments, “As specialist providers of expat savings accounts, we regularly track customer needs and respond quickly with solutions. Whilst we know that our 1 and 3 year Manx Bonds with monthly interest option are proving extremely useful and popular for those customers who want a monthly income, we also know that there are customers who also need a great rate over a longer term. We have taken advantage of current stable market conditions and bought a great competitive rate on Manx Bonds for customers. Not only does our Manx Bond range offer investors flexibility of saving term, but also aptly demonstrates our commitment to give a competitive edge to investors looking to lock in returns.”

These Manx Bond rates (Issue 49) are only available until 31 January 2007 and are limited issue products. Applications may be refused if they are fully subscribed. Customers interested in monthly interest options for the 4 and 5 year Manx Bonds and with deposits over GBP50,000 should contact the Derbyshire Offshore Customer Service Team for further information.

Derbyshire has also recently announced mortgage products for expatriates. Says the company:

'Expatriates looking for a Buy to Let mortgage can take advantage of The Derbyshire’s new ‘three year’ fixed rate of 5.60% (6.90% APR) until 31 January 2010. For extra flexibility, overpayments of up to 10% a year can be made without incurring early repayment charges. At the end of the three year term, the interest rate tracks Bank of England base rate at a margin of +1% for the remainder of the mortgage. There is a daily interest calculation for capital repayments, with borrowers receiving the benefit of capital repayments straight away through a reduction in the interest charged.

'For expatriates who still have a spouse or family member living in their UK property, then the new ‘2 Year’ Expat Flexible Tracker mortgage is now available at 5.05% (5.90% APR) for two years. This low-cost tracker mortgage has no early repayment charges – borrowers can make overpayments with the potential to make underpayments and take payment holidays up to the amount overpaid.'

Fiona Passey comments, “Property in the UK is still an excellent investment vehicle for most expatriates, especially those looking to build a mixed retirement portfolio. As both these products are available for re-mortgaging purposes, starting 2007 with a new Derbyshire mortgage offer is definitely worth considering.”

Derbyshire Building Society is one of the UK’s largest building societies with assets in excess of GBP5bn. The Derbyshire is a mutual organisation with no outside shareholders.

Derbyshire Offshore is at a trading name of The Derbyshire (Isle of Man) limited a wholly owned subsidiary of Derbyshire Building Society. Derbyshire Offshore is regulated by the Financial Services Commission on the Isle of Man and is licensed for banking business. In addition to the Isle of Man Depositor Protection Scheme (prescribed in the Banking Business Compensation of Depositors Regulations 1991), Derbyshire Building Society has given an irrevocable and binding undertaking to ensure that, whilst Derbyshire Offshore remains its subsidiary, it will at all times be able to discharge its obligations as they fall due. Their products are primarily designed for non-UK residents who wish to benefit from interest on their offshore investment without deduction of tax.

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